I have remastered KNOPPIX_v6.7.1CD-2011-09-14-JP.ISO and did the following changes:

A. Changed logo.16 and boot.msg with my own pictures

B. I changed background.jpg, knoppix-logo-medium.png, knoppix-logo-small.png to my pictures in ../knx/master/KNOPPIX.

C. Created a file called MyProg.desktop in ../knx/source/KNOPPIX/home/knoppix/.config/autostart folder with the following contents:

[Desktop Entry]
Type=Application
Name=MYPROG
Exec=sudo /usr/loca/bin/MYPROG.sh &
Terminal=false
X-GENOME-Autostart-enabled=true

Also renamed initdesktop.desktop to initdesktop.desktop.bak
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D. Created a file in /usr/local/bin/MYPROG.sh with exec permission with contents:

#!/bin/sh
export LD_LIBRARY_PATH=$LD_LIBRARY_PATH:/usr/local/lib
/bin/MYPROG

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I made the iso and booted and observed the following:
Boot msg and log got changed
program boots up with a penguin picture in the background screen. Nothing else has changed. I can find my program and run it from the terminal or by double clicking without any problem.
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My question:
Same procedure worked fine for English version. What goes wrong here and how to correct it? ( Change the background, and autostart my program)
What is special about initdesktop.desktop? Why my desktop does not get control?
If I replace my desktop with initdesktop, the normal Knoppix boot background comes up fine.

My program is a wxGTK program and as I said I can double click and run it after booting from the remastered CD.